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The salary you must earn to buy a home in 50 metros, mortgage rates pittsburgh.#Mortgage #rates #pittsburgh

The salary you must earn to buy a home in 50 metros, mortgage rates pittsburgh.#Mortgage #rates #pittsburgh

The salary you must earn to buy a home in the 50 largest metros

The salary you must earn to buy a home in the 50 largest metros

How much salary do you need to earn in order to afford the principal, interest, tax and insurance payments on a median-priced home in your metro area?

For our calculations, HSH.com uses the National Association of Realtors 2017 third-quarter data for median-home prices, national mortgage rate data derived from weekly surveys by Freddie Mac and the Mortgage Bankers Association of America for 30-year fixed rate mortgages and available property tax and homeowners insurance costs to determine the annual salary it takes to afford the base cost of owning a home (principal, interest, property tax and homeowner’s insurance, or PITI) in the nation’s 50 largest metropolitan areas.

We used standard 28 percent “front-end” debt ratios and a 20 percent down payment subtracted from the NAR s median-home-price data to arrive at our figures. We’ve incorporated available information on property taxes and homeowner s insurance costs to more accurately reflect the income needed in a given market. Read more about the methodology and inputs on the final slide of this slideshow.

In the commentary section of each slide, we provide data to show how the required salary would change if you were to make a 10 percent down payment instead of a 20 percent. As we work from a fixed median home price, a smaller down payment means both a larger loan amount and the need to pay for private mortgage insurance, which in turn means even higher salary requirements.

Third-quarter analysis: The housing market continues to suffer from a combination of limited inventory and rising prices. Amid still-modest income gains, the combination continues to retard sales growth, and there are few signs that the situation will get better quickly or soon. As well, with potential changes afoot for tax dedcutions for both mortgage interest and capital gains on the sale of a home some housing markets could face additional challenges, too.

In the release that accompanied the quarterly report on metropolitan area home prices, NAR Chief Economist Lawrence Yun didn’t find much to be optimistic about, noting “Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had out outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability conditions.

As we observed in our analysis, Mr. Yun also added that “While there was some moderation in price appreciation last quarter, home prices still far exceed incomes in several parts of the country. “.

A lack of affordable housing isn’t without impact on the economy. “Affordability pressures are frustratingly occurring in places where jobs are plentiful and incomes are rising, added Yun. Without a significant boost in new and existing inventory to alleviate price growth, job creation could slow in high cost areas in upcoming years if residents begin exiling to more affordable parts of the country,” added Mr. Yun.

Existing home sales remain steady but without much traction. The annualized pace for sales in the third quarter of 2017 was 5.39 million, but a shade higher than last year’s 5.38 million. Sales began this year with a relatively upbeat pace of 5.26 million in the first quarter but have since decelerated.

Here s a current look at how much salary you would need to earn in order to afford the principal, interest, taxes and insurance payments on a median-priced home in your metro area.